Generally, there are three types
of long essays (30m) for Unit 2: Managing the Economy:
a)
Many to one. Students will be
tested on their ability to use macroeconomic policies to solve a specific
economic problem. For instance the usage of demand side policies or/ and supply
side policies to reduce unemployment etc
b)
One to many. Students will be
required to know how does one specific policy (rise in government spending,
lower income tax etc)/ macroeconomic problem (rising unemployment, weaker pound
etc) may affect the UK’s macroeconomic objectives
c)
Many to many. Finally, students
may be asked to use suitable economic macroeconomic policies to overcome the
problems mentioned in last few paragraphs of the Extract or how does a set of
macroeconomic policies can affect the UK’s macroeconomic objectives
Quick review:
June 2009 Q1 (the very first Unit
2 examination, after the new GCE specification in 2008)
(d) Evaluate the use of supply side policies to
achieve economic growth (30m) (many to one)
June 2009 Q2
(d) To what extent do
demand-side policies lead to conflicts between macroeconomic objectives? (30m)
(many to many)
June 2010 Q1 (initially,
Unit 2 was meant to be an annual paper offered only during the summer)
(d) Evaluate the likely effects of a recession (negative economic growth) on
the UK economy (30m) (one to many)
June 2010 Q2
(d) Evaluate three ways in which economic policy can be used to ‘stimulate
UK economic growth’ (Extract 1, lines 4 to 5) (30m) (many to one)
January 2011 Q1
(d) Assess the effectiveness of supply-side measures that the government
could use to deal with the problems outlined in paragraphs 3, 4 and 5 of Extract
1 (30m) (many to many)
January 2011 Q2
Evaluate the likely effects on the UK’s current account of the balance
of payments of changes in consumption, investment and the exchange rate of the
pound sterling (£), as shown in Figures 1 and 2 (30m) (many to one)
June 2011 Q1
(d) Discuss the fiscal and supply side policies the UK Government could
pursue to reduce the rate of unemployment. Refer to Extract 2 and Figure 3 in
your answer (30m) (many to one)
June 2011 Q2 (this question is almost similar to June 2009 Q2, except
that the transmission mechanisms do not start from macroeconomic policies)
(c) To what extent might rapid economic growth conflict with at least two
other macroeconomic objectives? (30m) (one to many)
January 2012 Q1
(c) Assess the likely impact of UK government labour market policies on
any three macroeconomic objectives. Refer to the information provided
and to your own knowledge (30m) (many to many)
January 2012 Q2
(c) With reference to Extract 2, evaluate the likely impact of higher
inflation on three macroeconomic objectives (30m) (one to many)
June 2012 Q1 (exactly the same question with June 2011, Q1)
(c) Evaluate macroeconomic policies which may be used to reduce the
level of unemployment in UK (30m) (many to one)
June 2012 Q2
(c) Evaluate the benefits of economic growth for the UK (30m) (one to
many BUT must be ‘good’ macroeconomic objectives)
Last minute tips/ preparations:
a) There will only be 7 questions. The component marks are 4-8-12 for (a),
6-8-12 for (b) and 30m for (c)
b) Short evaluation questions normally carry 12m, where 4m are meant for
evaluation(s). Candidates may provide one evaluation as 4m or two evaluations
that are less elaborated as 2m each
c) The format for long essays will always be 6-12-12. The introduction
carries 6m where 2m are meant for definition while 4m diagram. A correct shift
of AD/ AS (1m), axes, line and equilibrium labeled (3m). Edexcel appears to be
very generous with the definition for macroeconomic objectives. Any three
macroeconomic objectives mentioned will earn you 6m, 2m each
d) Don’t forget to provide reference. Each reference is 2m and there are
four or five questions that may require you to provide reference. Easily, you
could have scored 10m in hand. It may be data reference or an evidence quoted
from the Extract
e) Usually each set of question will have 8m allocated for diagram. The first
4m are meant for short AD/AS diagram-based question while the other 4m for the
last long essay question
f) Since January 2012 examinations, Edexcel provides 2m FOR EACH POINT
IDENTIFIED (previously was 1m each). It is meant to help average students to lift their scores. Expect
12m from here
g) Easily and effortlessly, each student can easily get 30m FOR FREE,
provided if you remember to insert all reference (10m), correctly draw the
AD/AS diagram with proper label (8m) and identification of points (12m). The challenge
is, can you remember all the skills/ techniques taught under the exam stress
and after ‘mental dehydration’?
h) Please allocate 35-40 minutes for 30m essay. Nothing less than that
k) There are actually 7 macroeconomic objectives, not 6 as mentioned in most textbooks, The new 7th objective is to reduce budget deficit/ national debt
i) When the question say ‘effects onto the UK economy’ under the 30m essay,
don’t be panic, It is the same if the instruction is ‘effects onto any 3
macroeconomic objective’
l) There are new changes for the evaluations under 30m essay. Instead of (6m+6m) and (4m+4m+4m), now it has (2m+4m+6m)
j) Please practice and perfect your transmission mechanism. I am very sure
the MANY-1, 1-MANY and MANY-MANY long essay will appear in your examination
This few can be a good practice before your actual examinations tomorrow:
a) Evaluate the effects of falling pound onto the UK economy (30m) (1-many, think of macroeconomic objectives)
b) Evaluate the effects of falling house prices onto any three macroeconomic objectives (30m) (1-many)
c) Evaluate at least two macroeconomic policies to increase growth within the UK economy (30m) (many-1)
d) Evaluate the effects of expansionary monetary and fiscal policy onto any three macroeconomic objectives (30m) (many-many)
Best of luck!!! Cheers